The rapid expansion of sport technology has opened new avenues for athlete development but also created risk gaps that many organizations have yet to address.
“People often forget that doing good for somebody, or to do it in good nature, sometimes can result in poor outcomes for both parties, unintentionally,” said Steve Pearce (pictured), commercial insurance sales manager at Seafirst Insurance Brokers.
He pointed to the rise of retired athletes moving into mentorship roles – often without formal certification – as a prime example. Many are drawn into the space by demand from parents seeking an edge for their children, yet few understand the operational and legal exposures. “They have not run a business and they don't understand that there are liabilities” that come with offering services, Pearce said. The absence of incident logs, call records, or proper insurance coverage can turn a well-meaning initiative into a costly dispute.
Pearce said this trend was not confined to one sport or market. “If you have the money, you can go anywhere in the world and now practice your craft,” he said. The opportunity to train at elite levels has fueled a proliferation of niche coaching platforms, specialized facilities, and athlete-focused tech ventures – each carrying risks that traditional policies may not fully address.
Beyond coaching, the commercial ecosystem now includes data analytics firms, remote training tools, and integrated performance services. These models are reshaping not just how athletes prepare, but also the types of coverage organizations require to protect themselves.
The surge in biometric and mental performance tracking has brought data privacy into sharper focus. While many businesses once stored identifiable information – age, address, demographics – Pearce said there was now a shift toward “faceless data” that strips personal identifiers. This approach reduces the attractiveness of datasets to cybercriminals, but does not eliminate exposure, particularly when dealing with high-net-worth families.
“They're not trying to get to these companies… they're trying to get to those parents,” he said. Even when working with payment processors that use advanced protections, Pearce warned that organizations cannot rely solely on a vendor’s security protocols. A single misdirected email or mishandled document could create a breach. “You still need to purchase cyber liability because they're still trying to get in,” he said.
Subscription-based sport tech services – from coaching apps to analytics platforms – are also becoming targets for cyberattacks. Pearce noted that some of these companies “spend more money on [IT protection] than they probably do on advertising,” but determined attackers can still exploit vulnerabilities. Recurring payment systems and stored subscriber data make them particularly attractive to criminals seeking financial information.
Pearce’s insight is shaped by decades in both sports and business. A former hockey coach and mentor, he later entered the insurance industry and joined Vancouver Island Technology, a hub for tech startups. “I understand their trials and tribulations of a startup… when I connect with a provider in the tech world in insurance, I can tell the story different,” he said. This background enables him to translate complex risk exposures into practical steps for business owners.
Cybersecurity has been a recurring focus. Pearce distinguished between the technical work of defending systems and the insurance coverage that responds when those defenses fail. Initially designed to protect third parties, he said coverage now leaned heavily toward first-party protection against ransomware, extortion, and direct system damage. “The first party coverage has almost taken over,” he said.
As sport tech continues to blur the lines between athletics, data, and commerce, Pearce said organizations would need to treat risk management as seriously as performance optimization. Those who fail to adapt, he warned, may find their passion projects undone by threats they never anticipated.
